After reading additional comments and thoughts around the value of IMU, my mind wandered, so I decided to look at the latest CSL annual report and utilise this as part of a potential comparison and how this might relate to IMU price going forward.
CSL has a Market Capitalisation of $137 billion on a before tax profit of $2.5 billion. I use this as the basis of comparison, as IMU would not manufacture their drugs and most likely push these out via distribution agreements.
In the video, LC mentions the equivalent drug would generate around $7-8 billion (Herceptin). As per my previous post, I am not sure if this based upon equivalent licensing or revenue. As such I will take this as revenue, and therefore IMU should be able to achieve a 15% licensing deal and and generate about $1 billion before tax (The $50 million rounding down would likely go towards additional drug research going forward, and therefore no future need for for additional external funding).
If we take this as the Gross Profit, and basing this loosely on the CSL equivalent, you could assume that IMU's MC would be valued around the $53 billion level. This would be based upon a licensing deal being signed and revenues starting to flow. Hopefully this provides a bit of a financial basis on the valuation of these shares.
If anyone thinks my logic is flawed, I am happy to listen to your views.
Wouldn't it be great if CSL actually did a deal with IMU. How awesome would that be. The tech staying within Australia and distributed to the world with all the monies flowing into our coffers. It might help when our other sources of exports start to dry up.
(BHP has a profit before tax of $13 billion and the company has a MC of $114 billion but then again, we are talking about massively different products).
As a final thought, if the delivery mechanism is similar to PD1-VAXX (and the reason for the fast clearance of this into patient use), then how easy would it be to derive a similar drug using the same mechanism for other types of cancer receptors and therefore cover 100% of the cancer spectrum.
IMU Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)